1. Motor Company manufactures two types of specialty electric motors, a commercial motor and a residential motor, through two production departments, Assembly and Testing. Presently, the company uses a single plantwide factory overhead rate for allocating factory overhead to the two products. However, management is considering using the multiple production department factory overhead rate method. The following factory overhead was budgeted for Pineapple:

1	Assembly Department	$420,000.00
2	Testing Department	1,200,000.00

Direct machine hours were estimated as follows:

Assembly Department	3,000	hours
Testing Department	6,000
Total	9,000	hours

In addition, the direct machine hours (dmh) used to produce a unit of each product in each department were determined from engineering records, as follows:

	Commercial	Residential
Assembly Department	1.6 dmh	0.8 dmh
Testing Department	3.2	1.6
Total machine hours per unit	4.8 dmh	2.4 dmh

Required:

Determine the per-unit factory overhead allocated to the commercial and residential motors under the multiple production department factory overhead rate method, using direct machine hours as the allocation base for each department.

2. Digital Storage Concept Inc. is considering a change to activity-based product costing. The company produces two products, cell phones and tablet PCs, in a single production department. The production department is estimated to require 3,975 direct labor hours (dlh). The total indirect labor is budgeted to be $437,250.

Time records from indirect labor employees revealed that they spent 30% of their time setting up production runs and 70% of their time supporting actual production.

The following information about cell phones and tablet PCs was determined from the corporate records:

	Number of Setups	Direct Labor Hours	Units
Cell phones	520	2,035	84,580
Tablet PCs	1,630	1,940	75,130
Total	2,150	3,975	159,710

	Required:
	Complete the Activity Tables for cell phones and tablets:
	* If required, round all per-unit answers to the nearest cent and other answers to the nearest dollar.

a.	Determine the indirect labor cost per unit allocated to cell phones and tablet PCs under a single plantwide factory overhead rate system using the direct labor hours as the allocation base. If required, round all per-unit answers to the nearest cent.
	Complete the Activity Tables for cell phones and tablets:
b.	Determine the budgeted activity costs and activity rates for the indirect labor under activity-based costing. Assume two activitiesone for setup and the other for production support.*
c.	Determine the activity cost per unit for indirect labor allocated to each product under activity-based costing.*
	Why are the per-unit allocated costs in (a) different from the per-unit activity cost assigned to the products in (c)?

Single Plantwide Method Shadod cels have feedback. Multiple Production Department Method Shaded cells have feedback. a. Determine he per-unit factory overhead ailocated to the commercial and residenal motors under the single plantwide factory overhead rate method, using direct machine hours as the alocation base. Commercial b. Determine the per-unvt factory overhead aiocated to the commercial and residential motors under the muitipie production department factory overhead rate method, using direct machine hours as the allocation base for each department Commercial s $864.00V per unit $43200V per unit per unit Points: 2/2 per unit F Points: 0/2 Feedback Feedback Check My Work Check My Work Department rate Overhead Machine hours Product allocation Machine hours per product x Department rate; Add both department allocations together Total overhead + total hours Rate Product costs Rate x Machine hours for each product to obtain a total per product